TreadLight produces two types of exercise treadmills: Regular and Deluxe. The exercise craze and related demand is such that TreadLight could use all of its available machine hours producing either model. The two models are processed through the same production department. (Click the icon to view the data.) What product mix will maximize operating income? (Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by each product.) A B 1 Per Unit N Deluxe Regular 3 Sale price $ 990 $ 600 4 Less expenses: 5 Direct materials 270 90 6 92 176 7 Direct labor Variable manufacturing overhead Fixed manufacturing overhead" 168 8 72 36 02 Variable operating expenses 121 63 10 Total expenses $ 723 $ 449 GA 267 $ 151 11 Operating income Allocated on the basis of machine hours Prepare the product mix analysis. TreadLight Product Mix Analysis Deluxe Regular TreadLight should produce the product with the contribution margin per unit of the constraint. times as much overhead cost is allocated to each Deluxe model as to each Regular model. In other words, it takes times as many machine hours to produce a Deluxe model. per machine hour to operating income), TreadLight can For each unit of the Deluxe model produced (contributing units of the Regular produce model (contributing TreadLight should produce per machine hour to operating income). Therefore, Choose from any list or enter any number in the input fields and then continue to the next